| Home Buyer Credit
FIRST TIME HOME BUYER TAX CREDIT PROGRAM EXTENDED AND EXPANDED!
Major Modifications To The Act Are Italicized On The Right
A Tax Credit indicates a dollar-for-dollar tax reduction, not a reduction in Tax Liability.
|
FIRST TIME HOME BUYER TAX CREDIT PROGRAMS |
FIRST CREATED JULY 2008
APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008 |
REVISED PROGRAM FEBRUARY 2009
EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009 |
RULES AS WERE CHANGED IN NOVEMBER 2009
EFFECTIVE DECEMBER 1 THROUGH APRIL 30, 2010. |
|
Credit Amount |
Lesser of 10 percent of cost of home or $7500 |
Maximum credit amount increased to $8000 |
$8000 credit
(or $4000 credit for married spouses
filing separately) |
|
Eligible Properties |
Any single family residence (including condos, coops, townhouses) that will be used as a principal residence. |
No change
All principal residences eligible. |
No Change except price point up to $800,000 |
|
Refundable |
Yes. Reduces (or can eliminate) income tax liability for year of purchase. Any unused amount of tax credit refunded to purchaser. |
No change
Purchasers will continue to receive refund for unused amount when tax return is filed. |
|
|
Income Limit |
Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000). |
No change
Same income limits continue to apply. |
$125,000: single person
or
$225,000: married person
Additional $20,000 |
|
"First-time" Homebuyers and with the most recent changes: Current Homeowners Included As Well |
Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase. |
No change
Still available for first-time purchasers only. Three-year rule continues to apply. |
Applicant(s)Must have utilized the home being sold as the principal
residence
consecutively for 5 of 8
previous years. |
|
Revenue Bond Financing |
No credit allowed if home financed with state/local bond funding. |
Purchasers who utilize revenue bond financing can use credit. |
|
|
Repayment |
Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing. |
No repayment for purchases on or after January 1, 2009 and before December 1, 2009. |
No. Buyers don't have to repay the tax credit, if owner occupies the home for 3 years or more. But, if the home is sold during the 3-year period, the tax credit will be recouped at home's sale. |
|
Recapture |
If home sold before 15-year repayment period ends, outstanding balance of repayment amount is recaptured on sale. |
If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009. |
|
|
Termination |
July 1, 2009 (note program changes for 2009) |
Extended to December 1, 2009. |
Purchases after
April 30, 2010 |
|
Effective Date |
Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year. |
All revisions are effective as of January 1, 2009. |
December 1, 2009 to April 30, 2010 Rules as enacted
November 2009 |
No matter your need, you may still qualify for the new home buyer tax credit, which is even available to those who currently own homes. The home buyer credit is not solely for "move-up" homeowners. The phrase implies a new home must cost more than the sale price of a previous home. The homebuyer tax credit is aplicable both to Bozeman homeowners moving downward in terms of cost.
The "move-down" homebuyer is pretty common, especially in the retirement market. Due to the present US economic condition, even more move-down buyers may be on the horizon. Downsizing not only pertains to cars and one's overall lifestyle, it can pertain to real estate as well.
Taunya Fagan Prudential Montana Real Estate
406.579.9683 taunya.fagan@prumt.com
giving you the advantage...®
Montana Real Estate - Bozeman Real Estate
Bozeman Montana Homes For Sale
Bozeman MT Real Estate - Montana Farms - Western Ranches
Search For Bozeman Land - Bozeman MT Homes For Sale
Bozeman Real Estate Blog Bozeman Real Estate Report
* * *
Search Bozeman Real Estate and Beyond | Realty Watcher | Luxury Homes - Luxury Property
Testimonials | Bozeman Schools - Public, Private, Post Secondary | About Taunya Fagan
Featured Listings | Contact Taunya | 1031 Tax Exchanges | Relocation | Detailed Listings
Area Resources | Real Estate Data | Interest Rates | Bozeman News | Loan Information
Financing | Montana Ranches | Marketing Real Estate | About Bozeman & Gallatin County
About Belgrade Montana | About Big Sky Montana | About Livingston MT & Park County
About Manhattan Montana | Montana Ski Resorts | Get My Home's Value | Bozeman Homes
|
